Lending tech startups accounted for 44% of the total fintech funding in 2020 Will insurance tech replace digital lending as investors’ favourite in 2021 The growing number of internet subscribers and smartphone users across the country and the Indian government’s proactive digital drive to ensure financial inclusion have seen the market for fintech solutions grow at a fast clip. Although mobile recharge and digital wallets laid the foundation of India’s fintech revolution, digital lending in the consumer space has now turned out to be the most lucrative opportunity. Thanks to the growing urbanisation and a rise in formal employment across Indian cities, the addressable market for consumer credit is poised to increase. But that does not mean that the sector is without its challenges. However, formal employment (as indicated by the number of EPFO accounts) surged nearly 4x from 44 Mn in FY15 to 161 Mn in FY21 (up to Q3). And lending tech startups are making the most of this opportunity with niche solutions such as sachet loans, advance salary and BNPL (buy now pay later) products.